BHP Billiton
A trading opportunity for you?
Will BHP Billiton break support, or will it rise again back to 1792p highs?
- BHP Billiton has a trendline of rising support since April 2017, recording 4 bounces
- Now trading 1531p (at time of writing).
- Shares -14.0% from 2018 highs; +14.9% from 2018 lows; +0.6% year-to-date.
- Shares jumped after Q1 production report (17 Oct)
- 17 Oct: BHP Billiton is running smoothly says RBC Capital Markets, with Oil weakness likely to be offset by increases in coal and copper production
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading BHP Billiton – An Example
Let’s say you like the BHP Billiton range, you think it’s heading back towards 1792p again. You decide to buy exposure to £10,000 worth of BHP Billiton using a CFD, at the current price of 1531p. To do this, you need £2,000.
Let’s assume BHP Billiton rises back to 1792p (+17%). Your profit would be £1705, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. BHP Billiton falls 4% and hits your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.